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Weekly Review Of High-Yield CEFs: First Trust High Income Long/Short Fund Is 8.63%-Yielder Trading At A 12.99% Discount

Published Wed, 15 May 2019 11:50:43 -0400 on Seeking Alpha

The closed-end funds from the high-yield sector significantly increased their prices over the past four months. Currently, most of them are traded at positive Z-scores, which is an indication that they have lost most of their statistical edge. Still, they are traded at high discounts, but we are cautious when we select our positions due to the lack of statistical edge. I still see several interesting buying opportunities in the sector, which I am going to discuss with you in this article.
At the end of the article, we will review in more details First Trust High Income Long/Short Fund (FSD) as a potential addition to your portfolio. It uses 21.43% effective leverage which is much lower compared to most of its peers. On top of that, it has one of the highest discounts in the sector and still a very attractive yield of 8.63%. Мore details will be discussed later.
The Benchmark
No doubt, the most interesting events from the last week ware related to the U.S.-China trade deal. Currently, most of the market participants are cautious and anticipate to see the outcome of the negotiations. Respectively, the stock market is very sensitive to this topic and it seems the investors preferred to close some of their long positions till they see a solution.
When there is increased volatility in the stock market and some uncertainty we usually see a reflection in the high-yield bonds and high-yield closed-end funds. This time the case is identical and the price of the iShares iBoxx $... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
MFS INTERMEDIATE HIGH INCOME FUND 2.61   0.0 0.00 0.00 9.39
PIONEER HIGH INCOME TRUST 9.11   0.0 0.00 0.00 8.87
WELLS FARGO ADV INCOME OPP FUND 8.04   0.0 0.00 0.00 8.84
MASSMUTUAL CORP INV 16.04   0.0 0.00 1.20 7.31
NEUBERGER BERMAN HIGH YIELD STRATEGIES FUND 11.54   0.0 0.00 0.81 6.97
ISHARES IBOXX $ HIGH YIELD CORPORATE BOND FUND 85.77   0.0 0.00 4.59 5.33
SPDR S&P 500 ETF 282.14   0.0 0.00 5.24 1.83

MFS INTERMEDIATE HIGH INCOME FUND - CIF
MFS INTERMEDIATE HIGH INCOME FUND - CIF  


Older articles featuring Mfs Intermediate High Income Fund (CIF):
High-Yield Market Is Fairly Priced
Weekly Review: High-Yield CEFs - HYB Is A Buying Opportunity With Fully Covered Dividend
Seeking Income In High Yield Bonds
Weekly Review: High-Yield CEFs - AIF Offers 8.18% Current Yield And Positive Earning/Coverage Ratio
HYG And U.S. High-Yield Market Outlook: Week Ending May 03, 2019
Weekly Review: High-Yield CEFs - BGH Has The Highest Yield And One Of The Lowest Durations
Looking To De-Risk? High Yield Can Help
The Dollar, Market Breadth, High-Yield Bond Market Health And The VIX
Weekly Review: High-Yield CEFs - GHY Is The Fund With The Biggest Discount
Weekly Review: High-Yield CEFs - IVH Is An Attractive Combination Of Discount And Current Yield

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